TaxTMI 
TaxTMI 
TaxTMI 
1973 (9) TMI 93
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....nt Commissioner. When the matter came before the Tribunal, it took the view that though the manure mixtures in question will fall within item 21 of the First Schedule, the sales by the assessee of the manure mixtures are second sales of chemical fertilisers and hence could not be taxed. Aggrieved against the decision of the Tribunal the revenue is before us. It is contended by the learned Government Pleader that the view taken by the Tribunal that the manure mixture having as its components any one or more of sub-items (1) to (15), which are chemical fertilisers, is also a chemical fertiliser which has already suffered tax is erroneous, that the manure mixture sold by the assessee is different from each of the items of chemical fertilisers ....
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.... is identity between the items of chemical fertilisers purchased and the manure mixture sold it is not possible to treat the sales of the manure mixtures as second sales. Though that decision was rendered in respect of a manure mixture having as its components both organic and inorganic substances, the principle of that decision has to be applied to the facts of this case. The ratio of that decision is that if the mixture sold had different chemical properties and treated as a different commodity in commerce, its sale cannot be taken to be a second sale of chemical fertilisers, merely because the components have suffered tax at an earlier stage as chemical fertilisers. Learned counsel for the assessee, however, points out that the said dec....
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....(1) to (15) and one or more of the organic manures." The expression "chemical fertilisers" occurring in the opening part of that item is wide in its scope so as to attract any chemical fertilisers and the words following it "that is to say" cannot be understood as words of limitation. In this view the manure mixture sold by the assessee has to be taken to be a chemical fertiliser. Besides, the manure mixture prepared from one or other of the articles mentioned in items (1) to (15) is treated as a chemical fertiliser in commercial circles and the mere fact that the mixture does not fall within the named articles (1) to (15), it cannot cease to be a chemical fertiliser. The learned counsel for the assessee placed reliance on the unreported d....